Login

A project has estimated annual net cash flows of $11,250 for 9 years and is...

70.2K

Verified Solution

Question

Accounting

A project has estimated annual net cash flows of $ $11, 250$ for $9$ years and is estimated to cost $ $47, 500 .$ Assume a minimum acceptable rate of return of $12 % .$ Use the Present Value of an Annuity of $ $1$ at Compound Interest table below.

Present Value of an Annuity of $ $1$ at Compound Interest

Year $6 % 10 % 12 % 15 % 20 %$

$1 0.943 0.909 0.893 0.870 0.833$

$2 1.833 1.736 1.690 1.626 1.528$

$3 2.673 2.487 2.402 2.283 2.106$

$4 3.465 3.170 3.037 2.855 2.589$

$5 4.212 3.791 3.605 3.353 2.991$

$6 4.917 4.355 4.111 3.785 3.326$

$7 5.582 4.868 4.564 4.160 3.605$

$8 6.210 5.335 4.968 4.487 3.837$

$9 6.802 5.759 5.328 4.772 4.031$

$10 7.360 6.145 5.650 5.019 4.192$

Determine $($ a $)$ the net present value of the project and $($ b $)$ the present value index. If required, use the minus sign to indicate a negative net present value.

Line Item Description Answer

Net present value of the project $($ round to the nearest dollar $)$ $fill in the blank $1$

Present value index $($ rounded to two decimal places $)$ fill in the blank $2$

Answer & Explanation Solved by verified expert

answer-section

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Other questions asked by students

Psychology

1.2K views

1.Â Â Â Â Â Which of the following is NOT an achieved status? a. Banker b. Student c. Father d. Male e. Club President

Physics

1.2K views

two crates, of mass 65 kg and 125 kg are in contact and at rest on...

Physics

1.2K views

Max m SECTION 1 Answer all questions max marks 20 assume g 10 m s...

Geometry

1.2K views

4 Almost everyone has played the rock paper scissors game at some point Two players...

Basic Math

1.2K views

Question 4 1 point Q B Chord CB is a diameter and B is 73...

Statistics

1.2K views

Find the final monthly payment required to pay off a loan with 900 remaining principal...

Accounting

1.2K views

Discuss the concept of materiality, especially as it pertains to accounting for byproducts. Should a...

Accounting

1.2K views

Find the amount of deprecation for the following using the straight line method: Cost:...

Accounting

1.2K views

College Park had earned $3,200 of unearned revenue.

Accounting

1.2K views

Joanne sells t-shirts at fairs. Her marginal cost to produce one t-shirt is $4.50. Her...

Accounting

1.2K views

Outstanding stock of the Hall Corporation included 40,000 shares of $5 par common stock and...

Accounting

1.2K views

Refer to the income statements presented in Exhibits 2.9,2.10,2.11,2.12, and 2.13 for Callaway Golf Company,...

1 Answer

$0.99

~~$1.99~~

(Save $1 )

One time Pay

No Ads
Answer to 1 Question
Get free Zin AI - 50 Thousand Words per Month

Best

Unlimited

$4.99*

~~$9.99~~

(Save $5 )

Billed Monthly

No Ads
Answers to Unlimited Questions
Get free Zin AI - 3 Million Words per Month

*First month only

Free

$0

Get this answer for free!
Sign up now to unlock the answer instantly

You can see the logs in the Dashboard.

Sign In

Don't have an account? Sign Up